Thursday, February 21, 2008

Magplane gets $1.9M more from Mongolian maglev deal

Magplane Technology Inc., a maker of magnetic levitation transportation systems, has added a new technical services contract to its joint venture with transportation interests in Inner Mongolia, officials report.

The contract, valued at $1.9 million, builds on an initial joint venture agreement, which included an $8 million "intellectual property compensation fee" paid to Magplane Pipeline Technology, a wholly owned subsidiary of Magplane, based in Bedford.

Magplane's Inner Mongolian partners include Beijing Farthest Technology Co. and Inner Mongolia Maglev Investment and Development Co. Ltd., a consortium of government investment agencies and industrial companies.

The full contract, including the design and demonstration of a magnetic levitation train line for industrial and commercial transportation, is expected to be executed in two phases, and completed by June 2008. Construction of the first commercial line is expected to begin during the first quarter of 2009, according to company officials.

In addition to the project in Mongolia, Magplane executives say they expect the joint venture to become a manufacturing center for other projects in the region.

Magplane's magnetic levitation system boasts significant advancements over other high-speed trains and light-rail transit systems, officials say, and is capable of achieving speeds up to 500 km per hour for intercity travel and nearly silent operation for urban mass transit systems.

Magplane was founded on technology developed by a number of MIT researchers and other institutions in 1992. After its spinout from MIT, the company completed a $2 million demonstration project for the IMC Global Corp. in November 2000, and has since been focused on transportation systems primarily in China and Asia.